At last, much anxiously awaited the Cabotage relaxation has been granted by the Union Ministry of Shipping to the Vallarpadam International Container Transshipment Terminal to carry out the transshipment of export-import containers. Of course, the relaxation is conditional that all the containers must be subject to 100% radiological scanning; the terminal must strictly comply with the applicable security procedures of International Ship and Port Facility Security (ISPS) Code apart from following the instructions given by the government. The Cochin Port Trust has already established 100% radiological scanning facility and the terminal already has, as per the Level 2 of the ISP S Code, entrusted the security with the Central Industrial Security Force, according to a press release from the Trust. No wonder, all involved in the shipping industry have cheered up the relaxation since it opens up a great opportunity to the Terminal to effectively compete with the neighbouring transshipment hubs which actually have been taking the lion’s share of Indian transshipment traffic. Non-availability of an international sea route has been the major reason for almost half of container traffic of India moving to ports in Colombo, Singapore, Salalah and Jebel Ali. The Cochin Port, however, has such a route available with a just 76 nautical miles deviation from the main East-West shipping route but it could not attract trade for want of the Cabotage relaxation. Now, on account of this relaxation, the Indian export and import trade would derive great benefits both in terms of reduction in transit time as well as in freight charges up to USD 300 per container.
Compared with the Colombo port’s transshipment throughput of about 2 million twenty foot equivalents (TEU) annually, the Vallarpadam is just doing a very insignificant business of 20,000 TEUs a year.
All good things come to those who wait; but, actions speak louder than words.
Compared with the Colombo port’s transshipment throughput of about 2 million twenty foot equivalents (TEU) annually, the Vallarpadam is just doing a very insignificant business of 20,000 TEUs a year.
All good things come to those who wait; but, actions speak louder than words.
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